Commonwealth Consolidated Acts

A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 79.10

Decreasing adjustment

  (1)   If:

  (a)   subsection   79 - 5(3) applies to a payment or supply; and

  (b)   after the * premium selection test was satisfied, the * operator became or becomes aware that there was actually no entitlement to an input tax credit for any of the amount of the premium or premiums paid in relation to the period during which the event giving rise to the claim happened; and

  (c)   if subsection   79 - 5(4) had applied, the operator would have been entitled to a * decreasing adjustment (the notional decreasing adjustment );

then:

  (d)   the operator has a decreasing adjustment whose amount is, subject to paragraph   (e), equal to the notional decreasing adjustment; and

  (e)   if one or more * increasing adjustments (each being a notional section   78 - 40 increasing adjustment ) would have arisen, before the decreasing adjustment under paragraph   (d) arose, under Division   19 because of section   78 - 40 applying in relation to the notional decreasing adjustment, the amount of the decreasing adjustment under paragraph   (d) is reduced by the sum of the notional section   78 - 40 increasing adjustments; and

  (f)   for the purposes of applying section   78 - 40 after the decreasing adjustment arises under this subsection, that decreasing adjustment is taken to arise under Division   78.

Increasing adjustment

  (2)   If:

  (a)   subsection   79 - 5(4) applies to a payment or supply; and

  (b)   as a result, the * operator has a * decreasing adjustment (the original decreasing adjustment); and

  (c)   after the * premium selection test was satisfied, the operator became or becomes aware that there actually was an entitlement to an input tax credit for some or all of the amount of the premium or premiums paid in relation to the period during which the event giving rise to the claim happened;

then:

  (d)   the operator has an increasing adjustment whose amount is, subject to paragraph   (e), equal to the original decreasing adjustment; and

  (e)   if one or more * increasing adjustments (each being a section   78 - 40 increasing adjustment ) arose, before the increasing adjustment under paragraph   (d) arose, under Division   19 because of section   78 - 40 applying in relation to the original decreasing adjustment, the amount of the increasing adjustment under paragraph   (d) is reduced by the sum of the section   78 - 40 increasing adjustments; and

  (f)   after the increasing adjustment arises under paragraph   (d), no adjustment arises under Division   19 because of section   78 - 40 applying in relation to the original decreasing adjustment.